If you are a shareholder and you do not have a thoughtful plan in place for passing your shares after you die, it could leave your heirs with some difficult choices. Typically a shareholder’s heirs have three options for dealing with your remaining shares:
- Your surviving heirs can try to sell the shares back to the company and hope the company offers a fair price.
- Your surviving heirs can try to sell the shares to someone outside of the company.
- Your surviving heirs can try to keep the shares and get involved in the business if they have the necessary qualifications.
Keep in mind though, especially when the company is a small business, there may have been a written agreement with the other shareholders on what happens when one shareholder dies – there may be limitations on who can buy/own the stock and how to pay for the stock.
If you are a shareholder and you need assistance creating a plan providing for the passage of your stock when you pass, contact The Curran Law Firm for help. Ms. Curran can also provide assistance if you are an heir of a shareholder.